Just offered my first contact…Unsure about the split

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  • #20226
    energyflow
    Guest

    Hi guys,

    I’m excited to say I’ve been offered my first exclusive contract with a large library in the US!

    They emailed me an artist distribution agreement to sign. It all looks good, however there’s a section I’m unsure about. The contract states…

    ‘Pursuant to the provisions of Paragraph 5, the following amounts shall be payable to Artist by Distributor:
    (a) Twenty Five percent (25%) of the Gross Receipts in excess of one thousand United States dollars
    ($1,000.00) per Master listed in Schedule “A” derived from or generated by synchronization licenses granted by
    Distributor hereunder.
    (b) Ten percent (10%) of the Gross Receipts per Master listed in Schedule “A” derived from or generated
    by sales of mechanical downloads (including, but not limited to, Permanent Digital Downloads (“PDD’s”),
    “streaming downloads” and “ringtones” as such terms are commonly referred to in the music industry) by
    Distributor hereunder.

    4. The performing rights in the Masters and the compositions contained therein shall be assigned to and licensed by
    the public performance societies to which Artist and Distributor belong. These societies shall be and hereby are
    authorized to collect and receive all monies earned from the public performance of the Masters and:
    (a) to pay one hundred percent (100%) directly to the co-creator(s)/co-composer(s)/co-writer(s) in the
    aggregate, of the amount allocated by these societies as the writer’s share of public performance fees for the Masters
    and;
    (b) to pay one hundred percent (100%) directly to the Distributor, of the amount allocated by these
    societies as the publisher’s share of public performance fees for the Masters.’

    Does this mean I get 25% of sync fees over $1000 and 10% of the master, plus 100% writer share?

    If this is the case, is this normal? I assumed these deals were 50/50 all the way. Can someone please clarify?

    Thanks in advance for your time.

    #20227
    Rob (Cruciform)
    Guest

    Your interpretation looks correct to me. Are they paying you an advance or WFH fee as well? If not, it’s pretty crap (IMO).

    #20228
    Desire_Inspires
    Participant

    It does seem that you would get 25% of sync fees over $1000. But what if the sync fee is under $1000? You would get nothing?

    Plus, you would only get 10% of any mechanical license fee? They would keep 90%?

    That sounds a bit unfair.

    #20229
    Rob (Cruciform)
    Guest

    Actually, I spoke to hastily based on skim reading and too many inferences from not enough information. There are a lot of ‘depends’ here. Are they paying for mixing and mastering? Are they covering session musos?

    Also, it’s not “10% of the Masters”, but 10% of gross receipts per master.

    #20230
    Trackmaster
    Guest

    Jeez. These libraries are really trying to screw over composers.

    We should get AT LEAST 50% of everything if there is no upfront pay involved. This is just disgusting, honestly.

    #20233
    MuscoSound
    Participant

    I don’t know all the details here but it sounds a little unfair from what was posted here. So basically they keep just about everything from 0-1000 on the sync, and then if it’s over 1000 you only get 25%. I would say no thanks unless they are paying something upfront for your music and are placing a lot of music that will generate back end money. I don’t like the idea of getting zero commission for anything under $1000, you should get a cut of that regardless, and a lot more then 25%.

    #20234
    energyflow
    Guest

    Thanks for all of your responses. In answer to your questions…

    Nope, they’re not paying any advances or WFH fees.

    And they’re not paying for mixing, mastering or session musos.

    After reading your responses, I don’t feel so excited anymore. Are these deals negotiable?

    #20236
    Desire_Inspires
    Participant

    Are these deals negotiable?

    Sure. Ask for what you think is fair. Be polite but firm. If they reject, don’t sign the deal. There is no reason to sign a deal that you are uncomfortable with.

    #20237
    Tbone
    Participant

    Never thought I’d say this a few years back but DI is right on the money. That’s excellent advice.

    And also, all these deals are negotiable – it’s not a US hostage situation, it’s just a library of WAV files.

    Good luck and let us know what happens. I would ask for a) the terms I want and think are reasonable and b) more clarity in the contract wording.

    #20238
    Desire_Inspires
    Participant

    Never thought I’d say this a few years back but DI is right on the money. That’s excellent advice.

    Ha ha ha. Me either! I guess I am learning.

    #20239
    Soundscape
    Participant

    What about copyright? Are they taking it in perpetuity? Reversion clause? Or is it only an exclusive representation during the term? How long is the term?
    All important things to think about.

    #20241
    energyflow
    Guest

    Thank you all so much for your words of wisdom.

    You’re right Tbone, it’s not a hostage situation. I will negotiate for a fairer deal and I’ll let you know the outcome.

    Thanks again.

    #20257
    Steve Ballard
    Guest

    FauxMusicSupe just tweeted and put this up on his tumblr blog a few hours ago about this library.

    #20258
    Steve Ballard
    Guest
    #20259
    Desire_Inspires
    Participant

    Ouch.

    Leave this company alone.

Viewing 15 posts - 1 through 15 (of 23 total)
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